question_answer 9)

Discuss the following as a source of human capital formation. (i) Health infrastructure (ii) Expenditure on migration

Answer:

(i) Health Infrastructure Investment in health facilities to build a physically as well as mentally strong human capital, is essential for increasing productivity. Preventive medicine (vaccination), curative medicine (medical inter yen lion during illness), social medicine (spread of health literacy) and provision of clean drinking water and good sanitation are the various forms of expenditures done on building health infrastructure which is considered as an important factor for human capital formation as it directly increases the supply of healthy labour force, A healthy person is an asset for the nation as ho is more productive than a sick poison who is unable to work efficiently due to bad health. Therefore, health infrastructure is a source of human capital formation. (ii) Expenditure on Migration People migrate in search of jobs with higher salaries than what they may gel in their native place People from rural areas migrate to urban areas in search of employment. Technically qualified persons, like engineers and doctors, migrate to other countries because of higher earnings in such countries. Migration in both these cases Involves cost of transport, higher cost of living in the migrated places and psychological costs of adapting to a new socio-cultural setup. The increase in earnings; in the new place outweighs the expenditure on migration. Hence, expenditure on migration is a source of human capita] formation.